Hey Joel,for whatever reason, WGX has never had a strong...

Hey Joel,

for whatever reason, WGX has never had a strong following on HC.
Though I suppose its perennial failings over the past 5-6 years could have something to do with it

My main surprise, as I posted on the GCY thread, is this pivot back to GCY, after just recently investing in AME and hinting that this was their new 'area' of investment. All thoughts of idea's pop into my head as to why WGX is suddenly moving on GCY (though clearly they don't like the merger with FFR). If WGX just waited until the merger was finished, then... for perhaps $25m more, they would get all the assets. Perhaps they believe that enough shareholders are indeed unhappy with the GCY/FFR terms and will prefer WGXs offer.

Though in saying the above, if WGX is thinking long term, then getting control of GCYs plant, means that MGV high grade deposits will only have 2 options for processing, RMS single plant, or WGX multiple plants. The snails pace that MGV is going at, I guess there is no hurry to move on MGV!

The plant increases WGX processing capacity by over 35%, yet... all for just $102m, or... after the cash GCY holds, closer to $90m.

Anyway, we hold both, though... I am 80/20 in favor of GCY. At a higher price, I would be happy enough to an enlarged holding in WGX/GCY.

I wonder if WGX is grabbing GCY also to increase its corporate appeal... (i.e. make itself so desirable that RMS finally makes a tilt for it etc, or another company).

In the end, GCY is trading well bellow its intrinsic value and WGX is not looking a gift horse in the mouth. If they get GCY for the current offer.... then whilst I would be grumpy as a GCY holder, but... happy enough as a WGX holder.

I am surprised at how little M&A is happening right now, as the producers are sitting on piles of cash, debt is cheap etc etc.